NMHC Speaks Out Against Potential Rules for Multifamily Broadband

September 05, 2017

Copyright: Ekaphon Maneechot

NMHC again filed comments
with the Federal Communications Commission (FCC) on August 22, arguing
against new regulatory limits on agreements between apartment companies and
broadband providers. Specifically, NMHC argued that the ability of apartment
owners to negotiate such agreements with broadband service providers does not
hinder competition and rebutted unsupported assertions made by those favoring the
regulation. NMHC also filed a letter
jointly signed by eight trade associations representing a wide range of real
estate sectors urging the FCC to refrain from imposing unnecessary and
burdensome regulatory limits.

In June, the FCC approved a Notice of
Inquiry (NOI) requesting input on the
impact of exclusive marketing, bulk billing, revenue sharing and exclusive
wiring agreements on competition for broadband services in residential and
commercial “multiple tenant environments”(MTEs), including rental apartment
communities, condominiums, community associations, shopping centers, offices
and other centrally-managed properties.

NMHC filed initial
comments in July, explaining that residents have been well-served by the
existing regulatory environment, and new regulations could result in higher
prices, lower service quality, decreased competition and slower broadband
deployment. In an industry advocacy letter coordinated
by NMHC, 31 companies representing almost 1.3 million apartment homes
emphasized the importance of retaining the ability to negotiate agreements with
broadband providers to bring high-quality, competitively-priced service to
their residents.

It’s unclear when, or whether, the FCC may propose
regulatory action based on information submitted in response to the NOI, or act
on a recent challenge
to a San Francisco ordinance involving similar issues. This NOI is the
latest development in what may be an extended period of deliberation by the
FCC. The NOI coincides with a petition to
the FCC filed by the Multifamily Broadband Council (MBC) challenging a San
Francisco mandatory access ordinance. The ordinance, known as Article 52,
created a right for apartment residents to request service from a
communications provider. NMHC filed comments
with the FCC on May 18 and June
9, and facilitated an industry
advocacy effort supporting MBC’s challenge to the San Francisco
ordinance.

The impact of the NOI on the FCC’s consideration of MBC’s
petition is currently unclear. In the meantime, however, the San Francisco
ordinance stands. NMHC will continue to vigorously represent the apartment
industry’s interests and educate the FCC about the multifamily broadband
market.